Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Best savings account?

Options
  • 10-06-2011 12:04am
    #1
    Stinicker
    Banned (with Prison Access) Posts: 7,102 ✭✭✭


    I have been looking around and I want to save some money in a savings account and AIB's One Year Fixed Term Reward Account seems to be a pretty good enough deal. I want to save €17.5k which I saved the last few years as I was going to buy a new car but have since changed my mind on the idea.

    Basically AIB would give me 3.95% for twelve months so 17.5k + 3.95% = €18,191.25 -€691.25 in interest - DIRT tax @ 27% = €504.61 in interest.

    It seems to be the best interest rate I can find online at the moment, however the ECB has signalled they will increase rates next month and are likely to increase interest rates again after July to give two more rate rises this year. How likely would this be to have an effect on consumer saving interest rates? I know the banks will hammer people with loans straight away but I wonder will they will be slow to pass on the benefit to the saver?

    If I thought that savings rates would rise I'd instead leave the money in situ as it is fragmented around a few different savings account and I kinda basically hobbled it together that way as those accounts I had since I was a kid and I subsequently used them to save spare money I'd lying around over the years and now I want to amalgamate them and get the maximum interest for the money as god knows inflation has devalued it enough!


Comments

  • Options
    #2
    ridelm
    Registered Users Posts: 32 ✭ridelm


    Hi Stinicker, the saving account from AIB looks good.

    I guess if the ECB says that interest rates will increase, that means you will get more money on the saving accounts. Where do you get that info from? Maybe it is worth waiting until the end of the year if there is a more competitive interest rate coming up?

    I was looking at the equivalent in Bank of Ireland that is not as good but not far:

    Earn a fixed rate of 3.80% interest over the 12 month term
    Minimum lodgement €20,000, maximum €1,000,000

    However we need to look up at the Fixed Term Rate and EAR to understand what option is the best suitable. For sure we should take action otherwise we will keep the weak 1% increase each year.


Advertisement